Small gap up this morning after yesterday’s blood bath, but then it was stuck on the first first resistance awaiting for the FOMC statement at 2:15 pm. Typical whipsaw resulted upon the statement. First it popped with anemic speculative volume, then down with big volume straight to the LOD as no QE3 was mentioned. Then it broke the LOD following dead cat bounce. Within minutes what looked like a back-test turned out to be a powerful rally and it lasted all the way to the closing bell, pretty much erased yesterday’s carnage with even wilder intraday swing. SPY was up 4.65%. On the 60 minutes and the daily charts, it really looked like exhaustion bottom. Technically, some decent bounce should be in store in the coming days. But these day, TA seemed especially hit-or-miss. As this is the very first opportunity in the past 2 weeks since the sell began, I finally get to start rebuilding my short position, added 150 SPXU today. It was too late after I realized the bottom was in as it happened so fast near the end of day. I stuck to the plan of building a bigger short position for the next bout of selling which should make lower lows. Given the usual jinx, I can foresee the tribulation ahead — market is going to bounce hard as I build my short position.
One thing that was puzzling for the bullish case was the money flows: -3,927 total money flows, -3,917 for block trades. Distribution day?!
AONE was up 17% today. I dumped 1/2 of my positions. I’ve suffered long enough waiting for AONE to turn the ship around.